USD/CHF Price Analysis: Bulls attack 50-DMA above 0.9700
|- USD/CHF holds onto the previous day’s bounce off 21-DMA.
- Impending bear cross on MACD, 50-DMA challenge bulls.
- 100-DMA, ascending trend line from March appear extra filters to the south.
- Horizontal area from early May appears a tough nut to crack for bulls.
USD/CHF defends Wednesday’s recovery moves above 0.9700, at 0.9715 during Thursday’s Asian session. In doing so, the Swiss currency (CHF) pair buyers poke the 50-DMA hurdle.
It’s worth noting that the MACD teases bears but steady RSI and the quote’s sustained trading beyond the 21-DMA, the 100-DMA and an upward sloping trend line from late March keep buyers hopeful.
That said, a clear upside break of the immediate 50-DMA resistance, around 0.9720 by the press time, appears necessary for the USD/CHF buyers to aim for the 0.9800 threshold.
However, a horizontal area comprising multiple levels marked since early May around 0.9875-80, appears crucial for the bulls before they aim for the yearly peak surrounding 1.0065.
Meanwhile, pullback moves remain elusive beyond the 21-DMA support of 0.9689.
Following that, the 100-DMA and a four-month-old ascending trend line support, respectively near 0.9595 and 0.9570, could challenge the USD/CHF bears.
In a case where the quote drops below 0.9570, the odds of witnessing a slump towards June’s low of 0.9495 can’t be ruled out.
USD/CHF: Daily chart
Trend: Further recovery expected
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